Hotel operator selection

Selecting the hotel operator and supporting the negotiation process

How will the hotel be managed and branded? This is a question that every hotel owner faces at the beginning of a new project or when contemplating a renovation. The three main options that an owner has are as follows:

1) Through a management agreement with a hotel operator. 2) Running the hotel under the owner's sole management and discretion. 3) Running the hotel on their own or with a 3rd party management company adhering to franchise/licensing requirements and brand standards of an international group.

Each one of these options has advantages and disadvantages in regards to their cost and the value that they add to a project. There is no universal solution or answer to the question; each case should be evaluated in regards to the project's overall goals, taking into account location & design, in close alignment with the client's preferences.

What We Offer Our company helps the client to identify the optimal management module and to provide best value in terms of time and cost. If the client wishes to cooperate with an international brand under a license or franchising agreement, we can assist the client to design the project to conform to the franchise's stringent requirements. When the client prefers to keep his/her business under his/her own brand, we offer help with the development of standards, human resources, and staff recruitment and training.

Contacting and negotiating with an international operator can be a complicated procedure. It requires sound knowledge of the process, the ability to manage the legal process, and attention to detail, in the following areas:

At what stage of the project you decide on the brand.

Legal implications of the brand requirements in Ukraine.

Which items of the contract are of primary importance.

What can be negotiated and what should be adopted without discussion.

Our company understands the specifics of negotiating with the international hotel operators and thus can:

- Select the brand that is the best fit for the hotel's location.

- Organize and manage a tender between operators.

- Audit the operator's requirements making sure that they adhere to Ukrainian legal standards and regulations.

- Undertake the overall management of the negotiation process to ensure the best interests of the owner.

- Optimize the negotiation period and work with named attorneys regarding the contract.

Without such professional support, negotiations may take up to a year and even longer many times resulting in a stalemate. Our team works to ensure that negotiations stay current and productive ending in a positive result for both the owner and operator.